Clayton Holdings Offers RESPA Compliance Checks

Clayton Holdings LLC, a provider of risk analysis, loss mitigation, operational solutions and staffing services, says it has enhanced its compliance tool – Clayton Loan Analysis System – and that it is ready for Regulation X, which implemented the Real Estate Settlement Procedures Act (RESPA) rules that became effective Jan. 1.

The adjustments to Clayton's testing relates to the good-faith estimate (GFE) and HUD-1/HUD-1A disclosures. These documents are reviewed as part of the due diligence process, and Clayton will now test for compliance with the new requirements of Regulation X in terms of proper completion of the updated forms.

The regulatory environment continues to change as regulators and elected officials react to the turmoil in the industry," says Vicki Beal, senior vice president at Clayton. "Maintaining compliance – even for the most diligent – is becoming increasingly difficult due to the changing environment."

For the 2010 GFE form, Clayton will test for five key elements: the correct version of the forms, whether the GFE is re-disclosed, whether settlement charges are available within the required 10 business days, the accuracy of the summary of loan terms, and whether the escrow account information is accurately completed (and, if not, what parts are inaccurate).

The company will also test the following seven aspects of the HUD-1 and HUD-1A settlement statements: new fee designations, "correct version," the adjusted origination charge, fees subject to zero tolerance, fees subject to a 10% tolerance, the trade-off table and the summary of loan terms.